BUCHAREST, Romania—The Romanian government has agreed to provide $108 million in state aid to Nokian Tyres P.L.C. for the construction of a greenfield tire plant in the country.
A government announcement, issued Jan. 18, indicated that the requested aid would be provided over a five-year period through 2028, subject to authorization by the European Commission.
Finnish tire maker Nokian Tyres disclosed plans last November to build the "world's first zero-CO2 emissions" tire plant in Romania. The $650 million project will be located in the northwestern town of Oradea, Bihor county, near the Hungarian border.
According to Nokian Tyres, construction is scheduled to begin in early 2023, with the first tires expected to be produced in the second half of 2024.